* Oil bounces after hitting 18-mth lows, U.S. stock futures
* European stocks down after German Ifo data
* Dollar hits one-week high vs basket, 5-wk high vs yen
By Carolyn Cohn
LONDON, June 22 Oil bounced from 18-month lows
and U.S. stock index futures pointed to a higher open on Friday
as investors looked to possible crisis resolution at upcoming
meetings of European leaders rather than at weak data.
European stocks were down 0.4 percent after German
business sentiment fell for a second straight month in June to
its lowest level in more than two years, according to the Ifo
think tank, adding to poor economic numbers this week from the
United States, China and Europe.
But investors were looking to avoid hefty sales before a
meeting of leaders of Germany, France, Italy and Spain in Rome
later on Friday and a full EU summit next week.
U.S. stock index futures rose 0.4-0.5
percent, recovering after U.S. stock markets lost 2 percent on
Thursday on anaemic U.S. factory growth in June.
Brent crude briefly traded at its lowest in 18
months before rebounding above $90 a barrel.
"It has been a long fall, driven by global economic slowdown
and oil fundamentals such as weaker demand from China," said
Tony Machacek, oil futures broker at Jefferies Bache.
"Technical indicators show the market is a little bit
oversold, so there could be some short-covering around."
Brent has fallen more than 8 percent this week, and is
heading for its biggest weekly drop in a year.
Ratings agency Moody's issued a long-expected downgrade to
the credit ratings of 15 of the world's biggest banks late on
But Morgan Stanley, one of the most closely watched
firms in the review, had its long-term debt rating lowered by
just two notches, one level less than had been expected, sending
its stock up sharply in after-hours trading.
Bund futures fell 33 ticks, reversing earlier gains
before the Rome meeting.
The European leaders will search for ways to achieve fiscal
and banking union in the euro zone and, more urgently, the
meeting may also be the occasion for Spain to formally request
assistance of up to 100 billion euros for its struggling banks.
Spanish stocks rose 1.34 percent after independent
audits presented on Thursday showed Spain's banks will need up
to 62 billion euros in capital needs under stressed economic
conditions, well below the 100 billion euro bailout ceiling.
Spanish and Italian 10-year bond yields
rose but are not as high as earlier this week,
when Spanish yields climbed above the 7 percent level considered
The dollar steadied after hitting its highest in over a week
against the euro and a basket of major currencies
and a five-week high against the yen, benefiting earlier
in the day from safe-haven flows and concern about further
easing by the Bank of Japan.